97-1216

INCOME

Signed 11/25/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioners, ) DECISION

:

v. )

:

AUDITING DIVISION OF THE ) Appeal No. 97-1216

UTAH STATE TAX COMMISSION, :

) Account No. #####

:

Respondent. ) Tax Type: Income Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5 An Initial Hearing was held on October 15, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing Petitioners was PETITIONER. Present and representing Respondent was Frank Hales, of the Auditing Division.

Based upon the evidence in the file and presented at the hearing, the Commission makes its:

FINDINGS

This appeal involves penalty imposed for failure to file an amended return within 90 days of an adjustment on the federal return for the years 1991 and 1992. Both years were readjusted at the federal level and the obligation to file the amended return was simultaneous for the two years. The penalty for 1991 was $$$$$ and the penalty for 1992 was $$$$$. The interest has accrued in the amount of approximately $$$$$ for 1991 and $$$$$ for 1992. The record shows that this constitutes first time error for the Petitioner and first time required to file an amended return.

APPLICABLE LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(10).)

DECISION AND ORDER

After a thorough review of the entire matter and consideration of the issues raised, the Tax Commission finds sufficient cause does exist to waive the penalty associated with the periods in issue, but not the interest. The interest merely reflects the fact that the Petitioner and not the Tax Commission had the benefit of the funds during the interim period. It is so ordered.

This Decision does not limit a party's right to a Formal Hearing. Any party to this case may file a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, UT 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 25 day of NOVEMBER, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner

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